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Dogecoin Price Is Rising With This Development: This Time There Is No Elon Musk On Stage!
Today's price increase on the Dogecoin front is part of a broader upward trend in the memecoin sector. For example, Shiba Inu, Pepe and other memecoin projects have also experienced notable increases in the last 24 hours, as shown below. Investors began flocking to Dogecoin and other memecoin projects following the sudden and unexpected return of Keith Gill, the man behind the 2021 GameStop short squeeze, after a three-year hiatus.
Gill has been at the center of the #GameStop process during the pandemic. Reddit investors supposedly turned the tables on hedge funds shorting the failed brick-and-mortar gaming store, which led to the price of GME rising over 1,000% in less than a month.
The duration of the GameStop short squeeze coincided with a major surge in memecoin projects such as Dogecoin and Shiba Inu, indicating increased risk sentiment among retail investors. This is similar to what happened in May, when GameStop share value doubled within hours of Gill's return, triggering the rise of the memecoin sector.
From a technical perspective, the gains on the #DOGE front are part of a rise developing within a formation that appears to be an inverted head-and-shoulders (IH&S) pattern. An IH&S pattern develops when the price forms three troughs in a row; the middle pit (head) is the lowest and is flanked by two higher pits (shoulders). This is corrected when the price moves above the neckline and rises by the height of the pattern.
As of May 14, DOGE was entering the penultimate phase of the formation, forming the right shoulder with a potential breakout if the price closes decisively above the neckline around $0.166. In this case, the IH&S target for the DOGE price is around $0.227 for May, a 55% increase from the current price level.
